As the bank expected, the Canadian economy is returning to growth around potential following temporary weakness in late 2018 and early 2019. Growth in the second quarter appears stronger than predicted, but this was due to temporary factors, including the reversal of weather related slowdowns in the first quarter and a surge in oil production. The housing market is stabilizing, as a material decline in long term rates supports housing activity, and exports have rebounded, the bank noted. Real GDP growth is now projected to average 1.3 percent in 2019 and around 2 percent in 2020 and 2021.
The Canadian dollar rallied earlier this morning however Federal Reserve Chairman Jerome Powell said downside risks to the U.S. economy remain with trade wars softening business investment and weak inflation, signaling that policy makers may be poised to cut interest rates as soon as this month, taking some gains out the CAD’s rally.
Currently Close Range
USDCAD 1.3105 1.3128 1.3070-1.3144
EURCAD 1.4753 1.4714 1.4698-1.4774
GBPCAD 1.6387 1.6363 1.6345-1.6426
US: Petroleum Status Report wk7/5
Crude Oil -1.1M Brls -9.5M Brls
Gasoline -1.6M Brls -1.5M Brls